0161 826 8171

Understanding your options

Debt solutionsexplained clearly.

Our experienced advisers will explain the available solutions, including their advantages and disadvantages, so that you can make an informed decision about how best to manage your debts.

May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.

MoneyHelper is a free service set up by the Government to help people make the most of their money. Visit MoneyHelper. Please note that we have no affiliation with MoneyHelper.

Debt solutions

Different circumstances needdifferent solutions.

There is no single debt solution that is right for everyone. Your income, expenditure, assets, debts and personal circumstances all need to be considered.

Below you can compare some of the main solutions that may be available. As with any debt solution, you should seek professional advice before committing.

01

IVA

Individual Voluntary Arrangement

If you owe debts of more than £6,000 and can afford to contribute at least £100 per month towards all of your debts, an IVA could be a solution to consider.

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Potential advantages

What could help

  • A single, potentially lower monthly repayment
  • Legal protection from creditors included in the arrangement
  • Interest and charges on included debts are generally frozen
  • Eligible remaining debt may be written off following successful completion
  • Ongoing help and support throughout the arrangement
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Things to consider

What you need to know

  • Your credit rating will be affected
  • Details are entered onto a public insolvency register
  • Your creditors need to approve the arrangement
  • You will need to follow agreed spending and budgeting requirements
  • Not every type of debt can be included

May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.

Learn more
02

DRO

Debt Relief Order

If you owe less than £50,000, have very little spare income and limited assets, a Debt Relief Order could be a solution to consider if you meet the eligibility requirements.

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Potential advantages

What could help

  • No payments towards debts included in the DRO during the 12-month period
  • The standard DRO period lasts 12 months
  • Interest and charges on included debts stop during the DRO period
  • Creditors included in the DRO cannot pursue you for payment during the DRO period
  • At the end of the DRO, if you have met the terms of the arrangement, the debts included in it will usually be written off
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Things to consider

What you need to know

  • Your credit rating will be affected
  • Details are entered onto a public insolvency register
  • Not every type of debt can be included
  • You cannot own your home
  • Strict limits apply to spare income and assets
Important: Debt Relief Orders are available in England and Wales and must be applied for through an approved debt adviser.

May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.

Learn more
03

Bankruptcy

Bankruptcy

Bankruptcy is a formal insolvency solution for people who cannot pay their debts and can provide a route towards a fresh financial start.

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Potential advantages

What could help

  • Most debts included in the bankruptcy can be written off
  • Creditors included in the bankruptcy are restricted from taking further action
  • Interest and charges on included debts stop
  • Direct contact from included creditors should stop
  • Depending on your circumstances, you may not have to make ongoing payments
  • Bankruptcy restrictions will usually end when you are discharged
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Things to consider

What you need to know

  • Your credit rating will be affected
  • Assets may need to be sold, potentially including your home
  • Details are entered onto a public insolvency register
  • Restrictions apply to obtaining further credit
  • Bankruptcy can affect certain occupations and business activities
  • There is a fee to apply for bankruptcy

May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.

Learn more
04

DMP

Debt Management Plan

If you can repay your unsecured debts but need longer to do so, a Debt Management Plan may allow you to make an affordable regular payment towards them.

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Potential advantages

What could help

  • Included unsecured debts can be managed through one regular payment
  • You can repay your debts over a longer period
  • Creditors may agree to freeze interest and charges
  • The aim is to repay the included debts in full
  • Flexible arrangement based on your personal circumstances
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Things to consider

What you need to know

  • Your credit rating can be affected
  • Only appropriate types of unsecured debt can be included
  • A DMP is not legally binding on your creditors
  • Creditors do not have to freeze interest or charges
  • Reduced payments can mean it takes considerably longer to repay your debts
Important: Your Debt Advisor does not administer or provide advice solely relating to Debt Management Plans. Where appropriate, we may refer you to an authorised third party.

May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.

Learn more

Speak to our team

Not sure which optioncould be appropriate?

Request a no-obligation callback for an informal discussion with a member of our team.

May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.

Contact usOr call 0161 826 8171